Entries in Colored Diamonds
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In the fall of 2016, workers at Rio Tinto’s Argyle mine in Western Australiadiscovered an extraordinary 4.38-carat rough diamond that appeared to glow like a red ember. Next month, a radiant-cut gem born of that rough—the 2.11-carat fancy red VS2 diamond fittingly christened the Argyle Everglow—is expected to fetch millions when it’s sold in a by-invitation-only silent auction.

Welcome to the high-stakes world of the Argyle Pink Diamonds Tender, an annual sale of the finest pink, purple, red, and violet diamonds found at Argyle over a 1-year period.

In late July, the miner previewed the 58 diamonds composing the 2017 tender at a New York City penthouse, including a 1.14-carat fancy red radiant-cut named the Argyle Isla and a 2.42-carat fancy purple-pink cushion-cut dubbed the Argyle Avaline. But the Everglow, the largest fancy red diamond ever found at Argyle, emerged the hero, owing to its singular combination of color, size, and clarity.

“We find less than a teaspoon of red diamonds a year, and in 33 years, we have never presented one as remarkable as this,” says Argyle Pink Diamonds manager Josephine Johnson.

To appreciate the Everglow’s exceptional rarity, it helps to understand its origins. Argyle is the world’s largest producer of diamonds by volume. Since opening in Western Australia’s East Kimberley region in 1983, the mine has yielded more than 800 million carats of diamonds, the vast majority of them browns—better known by their more spirited names, “Cognacs” and “Champagnes.”

The pinks, purples, and very occasional reds that are unearthed down under represent less than 0.1 percent of the mine’s production. Every year, Rio Tinto takes the best of these polished stones on a globe-trotting tour to Hong Kong and New York, culminating in October when the miner notifies the winning bidders.

For the select group of diamantaires invited to bid at this year’s sale, the Everglow represents a once-in-a-lifetime buying opportunity.

“There are less than 20 red and purplish-red diamonds over 2 carats in the whole world,” says David Shara, owner of New York City–based Optimum Diamonds. “I’ve seen quotes from $7 million to $10 million. I think it’s going to go for a massive number—and someone may blow everybody out of the water.”

Shara says the hype is warranted because in an industry teeming with gems labeled “one of a kind,” a fancy red diamond is the ultimate anomaly. “It can’t just be pink,” he adds. “It has to be this cherry-strawberry kind of color. It has to have the right amount of darkness, and it still has to look like a diamond: sparkly.”

Adding to red diamonds’ allure is the fact that “gemological science has not yet determined the cause of their color,” according to John King, chief quality officer at the Gemological Institute of America. “It may be related to pink color in diamonds, which scientists believe is the result of deformation of the diamond’s internal structure while it grows in the earth.”

There is another, even more compelling reason behind the Everglow’s über-collectability: The Argyle mine is expected to cease operations at the end of 2021.

“What happens when there’s not going to be another tender?” Shara says. “Prices will go to the moon because there’s no inventory out there, and Argyle diamonds are incredibly popular.”

Simply Red

Fancy red diamonds rarely come to auction, which is why it’s so difficult to pinpoint their value. Below is a brief list of the most recent record-holders:

Mandy Drury was standing in front of the big board of about 450 stocks at the CNBC studio. All stocks were heavily in the red. The market was down over 200 points. There was an air of nervousness as we were witnessing the worst selloff in the market in four months.

The market seemed to be paying homage to the 25th anniversary of Black Monday, the 19th of October, 1987, when the Dow Jones Industrial Average (DJIA) dropped by 508 points to 1738.74 (22.61%).

I thought, nothing out of the ordinary had transpired - General Electric and McDonald’s missed analyst expectations, notwithstanding that they still reported respectable earnings. It was Google though that really made people sit up

All natural diamonds have faults that could negatively influence their gemological rating and financial value. Diamond cutters can remove some of the clarity faults, but some flaws demand a different treatment, one which has techniques developed since the 1970s to nowadays. Every treatment that a diamond undergoes must be disclosed at every stage. Anyone who violates this obligation is breaking rules which apply to members of every diamond bourse and association in the world. In some cases, it is even illegal not to disclose.

Rio Tinto Diamonds appointed Kim Truter as managing director of the Argyle Diamond Mine in Western Australia, effective from July 1.

Truter, an experienced mining executive, has held a number of senior roles within Rio Tinto, most recently as president and COO of the Diavik Diamond Mine in Canada.

"I am delighted with Kim’s appointment and his extensive experience will be invaluable in leading the future development of the Argyle Diamond Mine," said Rio Tinto Diamonds managing director Bruce Cox.

Truter, who was instrumental in leading the development of underground mining at the Diavik Diamond Mine, said, "The Argyle Diamond Mine is an iconic Australian operation and it plays an important role in Rio Tinto’s global diamonds business. I am looking forward to working with the team at such an exciting time in Argyle’s growth and development.”

The 100-percent owned Argyle Diamond Mine is located in Western Australia. It is the largest producer of colored diamonds and the only consistent producer of rare pink diamonds.